Equalization Aid
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SOURCE The expressions "equalization aid" and "state aid" are often used interchangeably. In truth, however, they have separate meanings. Equalization aid refers to the state financial assistance through the equalization component of the state aid formula. A district must meet the qualifications as per the formula in order to receive equalization funds. Since Nebraska uses an equalization-based formula, the bulk of all state financial assistance is dedicated for this type of funding.
In addition to equalization aid, there are funds available to districts whether or not they are considered "equalization" districts. These "non-equalization" funds include amounts given to districts for each student enrolled as an option student. In addition, each district is awarded a portion of the receipts from income taxes collected from residents of the district.
Therefore, state aid refers to the total amount of equalization and nonequalization funds received by each local system.
By adding a district’s calculated equalization aid to its applicable non-equalization aid minus certain factors that may or may not be apply, one arrives at the district’s total state aid.
Stage One: The first stage of the process is to review the "needs" components, including cost per student, transportation and special receipts allowances, and the temporary aid adjustment factor.
Stage Two: The second stage is to review funding resources available to school districts, including local property taxes and other sources.
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